Plans to re-develop Silverstone have been rejected after a revolt by members of the British Racing Drivers' Club (BRDC), which owns the track.
Silverstone bosses were proposing a £600m redevelopment
The BRDC's hierarchy wanted to lease the British Grand Prix circuit to developer St Modwen for 150 years.
But opposition was so fierce that BRDC chairman Stuart Rolt has told members the scheme has no hope of success.
"There is no Board intention whatsoever to attempt to push through existing proposals," he wrote to members.
Silverstone's immediate future was secured in December 2004, when a five-year deal was agreed with F1 supremo Bernie Ecclestone.
But the Northamptonshire circuit is badly in need of a revamp, after criticism of its ageing facilities.
To help pay for the redevelopment, the board had proposed leasing the facility to St Modwen Properties in a deal that would have included building a luxury hotel and houses on the site.
Northern Racing, a company that controls nine British horse racing venues, would have become the circuit operators.
"It is clear there is strong opposition to these plans even in their un-finalised form," Rolt said in his letter to members.
"Although there is support from less vocal members, we acknowledge that there is little prospect of the necessary strong majority of members approving any move for us to proceed with the St Modwen/Northern Racing proposal.
"It is also abundantly clear that something really has to be done to secure the future of our club, independent of reliance upon the future of the British Grand Prix."
Rolt urged members, some of whom had threatened a vote of no confidence in the board, to attend a series of information "forums" next month to review the club's finances and discuss options for the future.
Opposition to the deal has been led by former British Formula Three champion Harry Stiller.
"It is the intention of the members, at all costs, to preserve Silverstone as the UK's home of British motorsport," he said.
"We want to uphold the aims and objectives of the club's forefathers in maintaining the circuit as the only home of the British Grand Prix.
"There are many other avenues to achieve this aim safely."